Petroleum product prices in Pakistan are set to rise from October 1, 2025, in what could be yet another blow to households already battling record inflation, soaring electricity bills, and food shortages.
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Industry sources say the price hike, triggered by higher global crude oil rates and a weakening rupee, will significantly raise costs for consumers. If approved by the government, the move is expected to hit low- and middle-income families the hardest.
Projected Price Changes (Ex-Depot):
- Petrol: Rs264.61 → Rs266.58 (+0.7%)
- High-Speed Diesel: Rs272.77 → Rs275.25 (+0.9%)
- Kerosene: Rs179.96 → Rs184.61 (+2.6%)
- Light Diesel Oil: Rs163.42 → Rs165.18 (+1.1%)
Kerosene will see the steepest increase, disproportionately affecting poorer households who rely on it for cooking and heating. Diesel’s rise is also critical as it fuels freight and public transport — likely causing a chain reaction of higher prices for essentials such as vegetables, grains, and pulses.
“Every time diesel prices go up, everything becomes more expensive — from bread to bus fares,” said Asghar Ali, a rickshaw driver in Rawalpindi. “We can’t take this anymore.”
Industry experts attribute the hike to persistent global oil price volatility, OPEC+ production cuts, and geopolitical tensions in key oil-producing regions. The rupee’s depreciation against the dollar has further magnified the impact.
“This is not just a price revision — it’s a question of survival for millions,” an industry representative warned, urging the government to reduce taxes and petroleum levies to cushion the blow.
Pakistan’s vulnerability to external oil shocks is not new. Past fuel price hikes in 2022 and 2023 triggered protests and drove inflation even higher. With inflation already elevated in 2025, economists warn that October’s hike could deepen the cost-of-living crisis and stoke public frustration.
Unless policymakers step in with targeted fiscal relief — such as tax adjustments or subsidies — consumers will bear the full brunt, potentially pushing millions further below the poverty line.